The market value of all of a firm's debt and equity. For example, if a company has $2 million of outstanding debt currently valued at 90% of face value and 100,000 shares of common stock trading for $50 per share, the enterprise value is (0.9 × $2 million) + (100,000 shares × $50), or $6.8 million.
enterprise value - Investment & Finance Definition
calculation used to compute financial ratios, frequently cited by Wall Street
analysts in research reports. To arrive at the enterprise value, minority
interests are valued at a level that the analyst considers to be fair value. If
corporate management doesn’t control the minority interest, the current market
value is used.